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SMALL BUSINESS ELECTRONIC PAYMENTS STATUS REPORT

Small businesses are the backbone of the American economy. The nation’s 33.3 million small businesses employ 61.6 million Americans – almost 46 percent of the private sector workforce. Small businesses across the country rely on credit cards and rewards to lower operating costs, re-invest in their businesses and employees, manage cash flow, and give customers more choice, security, and convenience in how they pay.

Press Releases

Small Business Owners Oppose Durbin-Marshall Windfall for Mega Retailers

Members of the Small Business Payments Alliance (SBPA) – a group of independent small business owners, entrepreneurs, and tradespeople – headed to Capitol Hill this week to share first-hand the negative impacts that new government mandates would have on their businesses. The SBPA was formed in the wake of proposed changes to the electronic payments system that threaten to reduce credit card payment security, access and benefits.

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Communities of color would be worse off under proposed credit card policy

Melanated communities in Colorado and across the country have historically and perpetually faced systemic barriers to credit and banking access. Melanated communities are already chronically underbanked, including 27% of Black families and 18% of Hispanic families. And, too often for those who are “banked,” the understanding of how to use these accounts for their benefit while keeping money in interest-bearing accounts and investments is not the norm.

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Credit Card Competition Act: ‘Unintended consequences’

The Credit Card Competition Act, imposing routing mandates on credit cards, would shift billions in consumer spending to less secure processing firms that would weaken the nation’s payment system. It will likely lead to even more private consumer information being made available to foreign networks (e.g.; China and Russia).

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Small Business and Durbin-Marshall: Myth vs. Fact

Lawmakers returning to Washington this month were greeted with previously debunked claims and recycled rhetoric about the benefits of the Durbin-Marshall credit card bill. With all the misinformation floating around, the Small Business Payments Alliance is setting the record straight on the negative impact that new government mandates would have on small businesses.    

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Counting the cost: The hidden impact of policy changes on credit card users

With their convenience and flexibility, credit cards have become an essential part of modern financial transactions and are often a consumer’s first entry into the broader financial services world. Unfortunately, recent policy proposals are threatening to disrupt this ecosystem, and the cumulative impact of these changes could have serious consequences for bank customers.

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Credit Card Competition Act Hurts Economic Growth

Economic development has always been near and dear to my heart. Helping our economy grow strong is one of the reasons I ran for the West Virginia House of Delegates, and it is something that I take very seriously.

Sometimes expanding our economy means that I must support state bills and sometimes it means that I must oppose others that I think will hurt expansion and growth. And sometimes it means that I must either support or oppose federal legislation.

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Stverak: Interchange bill is ‘direct threat’ to credit card system

CUNA Deputy Chief Advocacy Officer Jason Stverak appeared on the Live Richer podcast recently to discuss the many negative effects that come with the Credit Card Competition Act. CUNA, Leagues, and credit unions prevented the from moving forward in the previous Congress, despite efforts to include it in must-pass end-of-year legislation.

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The Collateral Damage for Durbin’s War on Credit Cards Is Us

The absolute last place you want to see someone practicing sleight of hand is when they have your credit card.

Alas that’s exactly what a bipartisan group wants to do with millions of Americans’ credit card benefits, hoping to distract us with some nice-sounding words about reform and affordability, all so they can service mega-retailers.

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The proposed Credit Card Competition Act (CCCA) is not good for small business

That is why I am concerned about proposed legislation in Congress called the Credit Card Competition Act (CCCA) – a bill which despite its name would disproportionately benefit larger retailers while jeopardizing the many benefits small businesses owners enjoy from their use and acceptance of credit cards.

Press Releases

SBPA Holiday Shopping Report: Durbin-Marshall is a Threat to Credit Card Security

With holiday shopping season in full swing and consumer spending on the rise, the Small Business Payments Alliance (SBPA) issued a report highlighting the importance of credit cards for small businesses – and the negative impact Durbin-Marshall would have on the security of the electronic payments system.

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Why Congress Should Stay Out of the Credit Card Industry

President Reagan famously said that the most terrifying words in the English language are, “I’m from the government and I’m here to help.” Likewise, when Congress threatens to “inject more competition in an industry,” skepticism should be our first response.

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Protecting the electronic payments system for small business

With the holiday shopping season upon us, it’s important to recognize the locally owned, small businesses that are the backbone of our economy. My cycling studio, Harlem Cycle, thrives on the energy and enthusiasm of our diverse clientele in the heart of Harlem. As a business rooted in the community, we cherish the trust our clients have for us and we take pride in representing everything that makes Harlem unique.

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Don’t REWARD Bad Legislation

The phrase “revolving credit line” usually conjures up images of balding bankers, meticulously reviewing detailed loan applications, while bright-eyed prospective borrowers wait on the edge of their seats. Today,
revolving credit lines for consumers take the form of colorful plastic cards that fit neatly in your wallet, and provide access to rewards, concert tickets, and much more. These colorful plastic cards—credit cards — are merely the end of an intricate network that combines consumer loans, account reconciliation, purchase protection, and security that is available to you, worldwide, on a 24-7 basis.

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Some Merchants Take Issue with the CCCA

Small businesses claim they have legitimate concerns that their larger counterparts will be the beneficiaries of lower card acceptance costs should the Credit Card Competition Act become law, argues the Small Business Payments Alliance, a trade organization recently formed by the Electronic Payments Coalition.

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Don’t kill credit card rewards

I’m the co-owner of Happy Howie’s, a manufacturer of dog treats in Detroit that has been in operation for 12 years. I assure you that running a small business is not easy and rather than helping, the Act will hurt small businesses by taking away credit card rewards, something most owners rely on.

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Proposed Credit Card Competition Act Will Negatively Impact Credit Cardholders

A new piece of legislation regarding credit cards has been introduced in the U.S. Senate. The proposed Credit Card Competition Act of 2023 (CCCA) targets credit card interchange income that issuers receive to offset costs and provide benefits in offering credit cards to their customers.

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Merchants shouldn’t count on the CCCA to meaningfully lower their costs

Last month, backers of the Credit Card Competition Act (CCCA) indicated that they anticipate a vote before the end of the year. This seems even more likely following Senator Dick Durbin’s most recent statement, urging that his bill be brought forward for a vote, ultimately to fight against what he calls the Visa-Mastercard “duopoly.”

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Business Progress Requires a Rejection of the Credit Card Competition Act

Most small businesses begin as an idea and a dream. Through risk-taking, creativity and sweat those dreams become the economic lifeblood of local communities across America. This activity has provided a pathway for millions to achieve prosperity and financial security.

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Credit Card Competition Act will hurt us and our companies

As a proud Arizonan and Latina small business owner, I advocate against any policies that threaten economic empowerment for our communities. I can say wholeheartedly that the Credit Card Competition Act will hurt us more than it will help us.

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New Credit Card Regulations will Hurt Small Businesses and Consumers

The Credit Card Competition Act of 2023—nicknamed “Durbin 2.0” after its co-sponsor, Sen. Dick Durbin, who enacted debit card regulations following the passage of the Dodd-Frank Act in 2010—would require every credit card transaction to have two networks—one of them not Visa or Mastercard—enabled to route transactions.

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Here’s why your credit card perks could be going away

One of the lessons my dad taught me early in life was the “law of unintended consequences,” which is that the actions of people — and especially of government — always have effects that are unanticipated or unintended.

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The Plan to Make Credit Cards More Expensive

Democratic lawmakers like Illinois Sen. Dick Durbin and the Justice Department’s Antitrust Division want to impose new rules for credit-card transactions that would reduce competition, harm consumers and crush small banks.

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Credit Card Competition Act has security risks

These days as technology gets more advanced, it seems like consumers are under constant attack from hackers and online scammers. Now more than ever, consumer safety and protection are of the utmost importance, which is why I need to sound the alarm on a bill that could compromise our safety.

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Small Banks and Credit Unions Paying Millions for Durbin Amendment

Last fall, the House Financial Services Committee passed a Financial CHOICE Act that repealed harmful Dodd-Frank Act price controls. That provision would have benefited consumers and small businesses and strengthened small banks and credit unions.

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Imposing Alternative Payment Networks on Credit Cards Will Likely Hurt Low Income Households and Small Merchants

This research note finds the proposed Credit Card Competition Act (CCCA) will likely generate between $13 billion and $15 billion in transfers to merchants from financial institutions and consumers. However, this distributional analysis finds almost all of those savings will accrue to retailers with $500 million in sales or more—none of which constitute small businesses under the Small Business Administration’s (SBA) definition.

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Protecting Consumers During Holiday Shopping Season

The Holiday Season is in full swing and as consumer spending rises, so too do fraud attempts. According to a 2022 study by AARP, three out of four U.S. adults age 18-plus have been targeted by or experienced at least one form of fraud. Fortunately, more and more consumers and merchants are using credit cards to protect themselves against financial losses.

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SBPA SMALL BUSINESS SATURDAY REPORT 2023

Small Business Saturday is an annual shopping event that takes place on the Saturday following Thanksgiving. Since 2010, the initiative has encouraged consumers to support local small businesses. The idea draws a stark contrast to Black Friday and Cyber Monday – two other big holiday shopping days that are dominated by mega corporations.

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The True Impact of Interchange Regulation: How Government Price Controls Increase Consumer Costs and Reduce Security

Credit Union National Association and American Association of Credit Union Leagues commissioned this report from Cornerstone Advisors in spring 2023 to examine the evidence of how debit card routing mandates and debit interchange price caps from Senate Amendment 3989 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Durbin Amendment” or “Durbin 1.0”) have impacted credit unions and the larger banking system.

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Understanding Credit Card Rewards: A Successful Model Under Threat

Credit card rewards programs are expensive and intricate for issuers to maintain, but they are also enormously popular with cardholders and a significant driver of customer acquisition. This Javelin Strategy & Research report looks at the current landscape for rewards programs, including possible responses by the industry should Congress pass the Credit Card Competition Act.

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Why the “Credit Card Competition Act” is Bad for Small Businesses

The Small Business Entrepreneurship Council (SBE Council) strongly opposes harmful credit card routing legislation introduced this year in the U.S. Senate (S. 4674) and U.S. House (H.R. 8874). If enacted, credit card routing mandates would be burdensome for small businesses.

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Credit Card Competition Act misses the mark for small business

For many small-business owners, it’s hard to imagine running their business without credit cards. A recent report found that 61% of entrepreneurs with a personal credit card use it to fund their business at least monthly, and a majority of those with a business credit card use it at least weekly.

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The Impact of the Durbin Amendment on Banks, Merchants, and Consumers

After the Great Recession, new regulatory interventions were introduced to protect consumers and reduce the costs of financial products. Some voiced concern that direct price regulation was unlikely to help consumers, because banks offset losses in one domain by increasing the prices that they charge consumers for other products.

Tools

Support for small businesses is more important now than ever before.

In the digital age, learning how to modernize your small business can be overwhelming. You can help your business thrive by setting up shop online with digital tools, accepting digital payments, and protecting your business from cyberattacks.

Small businesses owners and entrepreneurs face unique challenges like gaining access to capital and figuring out the best ways to run a business, all on their own. Get solutions for how to grow, promote, and optimize your business from the Small Business Hub.

Improving how your customers pay, both in person and online, is an important part of managing your business.